Global Daily Tax News, Finland Drafts DAC8 Crypto-Asset Transparency Law, (Sep 23, 2025)

The Finnish Government has drafted legislation to transpose into domestic law the EU's eighth Directive on Administrative Cooperation in Tax Matters (DAC8), which is intended to boost transparency in relation to crypto-assets.

A Finnish tax authority official said new obligations on currency exchanges to report transaction data will significantly support enforcement, stating: "Until now, the Tax Administration has always had to separately request information from virtual currency exchanges, but with the change, we will receive information continuously and regularly. This will allow us to more effectively monitor that taxes are paid correctly on income from virtual currencies."

The directive covers a broad scope of crypto-assets, building on the definitions that are set out in the regulation on markets in crypto-assets (MiCA). In addition, crypto-assets that have been issued in a decentralized manner, as well as stablecoins, including e-money tokens, and certain non-fungible tokens (NFTs), are included in the scope.

The provisions of DAC8 on due diligence procedures, reporting requirements, and other rules applicable to reporting crypto-asset service providers will reflect the Crypto-Asset Reporting Framework (CARF) and a set of amendments to the Common Reporting Standard (CRS), which were prepared by the OECD.

As well as requiring member states to share information on tax rulings for HNWIs, DAC8 introduces provisions on the automatic exchange of information on non-custodial dividends and similar revenues, in order to reduce the risks of tax evasion, tax avoidance, and tax fraud, as the current provisions of DAC do not cover this type of income.

DAC8 also seeks to improve the rules on reporting and communication tax identification numbers (TINs), to support tax agencies to identify taxpayers when assessing taxes, and strengthens penalties for failure to adhere to DAC reporting requirements.